A Research on the Business of Crypto-Currency Mining: Blockchaine, mining and other

Crypto-currency mining has been the order of the day as many Ponzi schemes/get rich quick programs as failed many individuals, different Ponzi sites promising huge ROI (return on investment) failed to keep to their promise as the system failed, this makes them pull out as they can’t cope any longer since they use the investment of ‘A’ as the ROI of ‘B’. They have to pull out when they’ve made money for themselves and their investors will be the one to bear the loss. Crypto-mining is all about producing digital money that can as well be changed for real money (dollars, Pounds, Euro etc.)

Crypto-currency can be achieved mainly by a process called mining, and the equipment is of three types;

1. S miner: it might be 58 or 59 antminer, they are special equipment for mainly mining, and combination or setup of a miner is called a MINING RIG. The S miner is connected to a motherboard equipped with a fan for cooling; the motherboard is connected to a monitor as we have it on a desktop to monitor the mining process. Different S-MINER has different hashrate i.e mining power and consumption of electricity.
2. GPU miner: There has been a clash between miners and gamers recently has there is an increase in the use of the GPU (GRAPHIC PROCESSING UNIT) to mine crypto-currency as there is an increase in the price of GPU use for playing video games as most miner use it to mine crypto-currency because it is more affordable than the S miners.
3. CPU miner: The CPU (CENTRAL PROCESSING UNIT) of a computer is utilized to mine crypto- currency; it’s the cheapest and slowest.

Of all the listed three ways, they go through the same process, but faster than each other, miner solves hashes, called HASHRATE in a blockchain with different difficulties which depends on the type of crypto-currency to mine. For example, Bitcoin blockchain and difficulties is the highest because there is a lot of traffic on the bitcoin network followed by Etherum then Monero. The hashrates has a standard unit of measurement, we have the least as H/S (hashrate/second), GH/S(Giga), MH/S(mega), and the highest being TH/S (tetra).

As there are three equipment’s for mining, there are two major ways to mine a crypto-currency, which are:

1. Cloud mining: this is achieved by pulling hashrates together by miners, the miners will buy hashrates from a company involving in crypto-currency mining with money or with crypto-currency (the most use are bitcoin and etherum), connected to a pool to mine, and the profit will be shared by the miners (investor) after maintenance and electricity fee has been deducted based on the number of hashrates purchased. Example of a cloud mining company is; hasflare.io, evolutionmining.com, genesismining.com etc.
2. Solo mining/Home mining: this is achieved by individuals that can buy the S antminer, GPU or CPU miner and manage it on his own. They can also connect to a pool or do it alone (solo). This is like subsistence farming.

The two ways have its own benefit, cloud mining is believed to be the best in the sense that your investment is in the right hand covered by insurance and handled by professionals. Solo mining benefits if the cloud mining service fold up or crypto-currency is banned or lose value, you will lose your investments, for solo mining; especially GPU AND CPU miners will be able to sell their equipment as they have other usefulness apart from mining.

The Cryptocurrency has hue benefit presently as there is an increase in its price, one can make passive income without sweating, register with a company, buy hashrate and your income will be sent to you as agreed. If it’s a solo, you just leave your rig to be mining and check once in a while if things are okay.as simple as that. But with the two ways, you need capital, in some cases, huge capital. Everything needs a sacrifice.

In 2012, the price of bitcoin is $100, as of 2nd of March, 2018, bitcoin is $10,000, early January, 2018, it jumps to $19,000. With crypto-currency, you can earn a living with any boss, no lateness to work, no monthly salary, etc. You can go on vacation anytime you want, do things the way you like as you are making money when you are sleeping, partying, on holiday. Digital money is fast rising; you can make it happen for you.

Cite this page